Medical tech company CONMED (NYSE: CNMD) reported Q1 CY2026 results exceeding the market’s revenue expectations, but sales fell by 1.3% year on year to $317 million. The company expects the full year’s revenue to be around $1.36 billion, close to analysts’ estimates. Its non-GAAP profit of $0.89 per share was 8.8% above analysts’ consensus estimates.

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StockStory’s Take

CONMED’s first quarter results were shaped by the company’s strategic exit from its gastroenterology (GI) product lines, which reduced reported sales but allowed management to spotlight growth in its remaining core platforms. CEO Patrick Beyer emphasized that, excluding the impact of the GI exit, CONMED saw continued progress in orthopedics and minimally invasive surgery, citing BioBrace’s clinical adoption and expanding AirSeal penetration as key contributors. Management noted, “Our decision was intentional and strategic. It allows us to concentrate resources and investment on our higher growth, higher-margin offerings.”

Looking ahead, CONMED’s guidance for the year is anchored in anticipated growth from its AirSeal, Buffalo Filter, and BioBrace platforms, with a renewed focus on minimally invasive surgery and orthopedic soft tissue repair. Management expects legislative momentum for operating room smoke evacuation, continued adoption of AirSeal in laparoscopic procedures, and the maturation of BioBrace’s clinical data to support future gains. CFO advisor Todd Garner stressed, “We are pleased to be able to raise our organic growth expectation... the signals we are seeing in Q1 have given us confidence.”

Key Insights from Management’s Remarks

Management attributed first quarter performance to the divestiture of GI products, operational improvements in supply chain, and focused investment in core growth platforms.

• GI Product Line Divestiture: The company completed agreements to divest all remaining GI products, allowing CONMED to concentrate on higher-growth, higher-margin areas such as minimally invasive surgery and orthopedics. This strategic shift was highlighted as a key to long-term value creation and was executed faster than initially planned, with transition services expected to continue into 2027.
• Orthopedics and BioBrace Momentum: Orthopedics delivered mid-single-digit growth, marking its third consecutive quarter of such performance. BioBrace, CONMED’s sports medicine implant, is gaining broader adoption among surgeons, aided by over 30 published clinical studies and ongoing enrollment in a 268-patient randomized controlled trial.
• AirSeal Platform Expansion: AirSeal, the company’s clinical insufflation technology, continues to see growth in both robotic and laparoscopic surgeries. The installed base now exceeds 10,000 systems globally, and management is pursuing increased penetration in the under-served U.S. laparoscopic market, where current usage is only 6% to 7% of procedures.
• Buffalo Filter Legislative Tailwinds: The Buffalo Filter smoke evacuation business is benefiting from a growing number of U.S. states enacting smoke-free operating room laws, now covering over half the population. New product launches, like the PlumeSafe X5, are resonating in outpatient settings, and direct smoke sales are becoming a larger revenue contributor.
• Supply Chain and Operational Improvements: Enhanced supply chain reliability has helped the orthopedics business regain momentum, with expanded internal and external manufacturing capacity supporting growth. Management views improved service levels as critical for maintaining strong customer relationships and enabling proactive commercial engagement.

Drivers of Future Performance

Management’s outlook for 2026 centers on ongoing momentum in its core platforms, supply chain execution, and legislative trends supporting smoke evacuation and minimally invasive procedures.

• Core Platform Focus: Growth is expected to be driven by increased adoption of AirSeal in laparoscopic and robotic surgeries, continued expansion of BioBrace in sports medicine, and legislative support fueling Buffalo Filter sales. Management believes these platforms offer durable opportunities for high single- to low double-digit growth over time.
• Supply Chain Resilience: Ongoing improvements in supply chain performance and expanded manufacturing capacity are expected to support more consistent service and enable the sales force to be more proactive, particularly in orthopedics. Management is cautiously optimistic that these changes will help recapture lost business and drive sustainable growth.
• Macro and Cost Headwinds: Management acknowledged ongoing inflationary pressures on commodity components and shipping costs, but stated these factors have been incorporated into current guidance. They also highlighted the impact of higher interest expense due to refinancing, which is expected to be offset by improved profitability in other areas.

Catalysts in Upcoming Quarters

In coming quarters, the StockStory team will focus on (1) the pace of AirSeal adoption in U.S. laparoscopic and robotic surgery, (2) ongoing legislation and hospital uptake of Buffalo Filter smoke evacuation solutions, and (3) the expansion of BioBrace in new soft tissue applications. Progress in supply chain reliability and execution of the GI divestiture transition will also be key markers for sustained growth.

CONMED currently trades at $36.52, up from $36.01 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

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